EU defence spending to boost PGM demand
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EU defence spending to boost PGM demand
Moves to strengthen Europe’s defence industry could boost platinum demand.
The decision by European leaders to increase their defence and aerospace spending to 5% of GDP annually, could be a boost for Platinum Group Metal (PGM) demand.
South Africa is by far the world’s leading producer of platinum, accounting for around 70% of global supply, which makes the industry one of the country’s most strategically important economic sectors.
The platinum belt, stretching across the Bushveld Igneous Complex in the North-West, Limpopo and Mpumalanga provinces, holds the largest known reserves of platinum group metals (PGMs).
PGM applications in defence systems
According to Johnson Matthey PGMs are used extensively in defence and aerospace applications, from avionics and electronics to lasers and optical systems, including night-vision goggles.
Johnson Matthey is a UK-based company that refines, markets and develops applications for platinum in industries ranging from automotive to clean energy.
According to a report by Johnson Matthey PGMs are key components in aircraft engines, with platinum and rhodium used for temperature-sensing and platinum for protective plating on blades.
A catalyst in military equipment
“Platinum and iridium are also present in missile nose cones due to their heat resistance while platinum is used in catalytic converters for military vehicles and to suppress infrared signatures, reducing vulnerability to thermal imaging and heat seeking weaponry.
“It also serves as a catalyst in fuel reforming systems for advanced military power units. Ruthenium is used for chip resistors and palladium for military-specification capacitors and other components.
“Rhodium and iridium are also components in reed switches (small sensors that operate when exposed to a magnetic field). Sensitive equipment or machinery in extreme environments with fire or explosion risks, such as military and aerospace applications, require reed switches that offer high performance and excellent safety.
PGMs are key to hydrogen fuel cell applications which are increasingly being explored for defence and aerospace purposes. In South Korea, defence solutions company Hyundai Rotem, a subsidiary of Hyundai Motor Company, is developing the world’s first military tank powered by hydrogen fuel cells.
WhyAfrica tracks EU and Africa links
To read more about the importance of Africa’s critical minerals to the military and defence sectors in Europe, visit the WhyAfrica website or purchase our Critical Mineral report available in WhyAfrica’s online shop.
Remember that WhyAfrica will be on the ground in Europe towards the end of this year and early in 2026 to trace Africa’s critical mineral supply chain to Europe and to find out more about future trade and the links that will shape future relations between these two continents, including critical defence materials.
Image: A group of jets flying through a cloudy sky. Image credit: Kevin Grieve from Unsplash.
EU defence spending to boost PGM demand